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Your intuition here is basically what's formalized by Piketty in "Capital in the 21st Century": that the rate of growth of capital exceeds the rate of economic
by md_ 6y ago
Your intuition here is basically what's formalized by Piketty in "Capital in the 21st Century": that the rate of growth of capital exceeds the rate of economic growth.
What's interesting is that while intuitively this makes sense (for the reasons you gave), the implication (that the rich get richer and inequality grows) is the opposite of what was hypothized by Kuznets (https://en.wikipedia.org/wiki/Kuznets_curve); https://en.wikipedia.org/wiki/Kuznets_curve); the latter hypothesis, to my limited understanding (as a non-economist), is fairly mainstream, and has influenced plenty of politics and public policy.
- Pfhreak 6y agoI'm halfway through reading Piketty right now, amusingly.
- supercanuck 6y agoWatch the Netflix documentary. Basically cuts to the chase.
- refurb 6y agoPlease don’t watch entertainment (Netflix documentary) as a substitute for a book and think they are equivalent.
- supercanuck 6y agoA documentary is more accessible to people and one can come away with the core the arguments
- themeiguoren 6y agoIMO understanding the arguments is useless without understanding how they were built, and what their caveats and assumptions are. Otherwise you end up parroting talking points without actually having thought about it. I’d rather people not hold an opinion on something than hold an unfounded one. A doc is not a good format for grounded understanding.
- supercanuck 6y agoNonsense. There are level of abstractions in all walks of life. You mustn’t be a trained economist to understand the points Piketty is making. > Otherwise you end up parroting talking points without actually having thought about it. That is quite a leap and a lot of assumptions baked in.
- deleted 6y ago[deleted]